EMPOWERMENT OF SMES AND ENTREPRENEURIAL ECOSYSTEMS: A QUALITATIVE STUDY ON DIVERSIFYING PATTAYA'S ECONOMY

Abstract

Purpose: This qualitative study aims to explore how small and medium-sized enterprises (SMEs) and entrepreneurial ecosystems in Pattaya, Thailand, can empower the local economy to diversify beyond its traditional reliance on the tourism sector. It underscores the imperative of economic diversification for tourism-centric economies, especially in light of vulnerabilities exposed by global disruptions such as the COVID-19 pandemic. Method/Design/Approach: Employing a qualitative research design, the study utilizes in-depth interviews, focus groups, and participatory research methods with local entrepreneurs and stakeholders. This approach facilitates a comprehensive understanding of the experiences, strategies, and perceptions of those directly involved in Pattaya's SMEs and entrepreneurial ecosystems. Results and Conclusion: The research findings highlight a significant trend towards digital innovation and a reorientation towards local markets among Pattaya's SMEs. It uncovers the necessity for substantial investments in technology and digital infrastructure to enhance economic resilience and adaptability. Furthermore, the study accentuates the pivotal role of government in fostering an enabling environment through regulatory reforms, financial incentives, and infrastructure enhancements. The importance of educational initiatives in nurturing entrepreneurial skills and the critical involvement of the private sector and international organizations in supporting economic diversification efforts are also detailed. The conclusion posits that a collaborative, multistakeholder approach is vital for the sustainable economic development of Pattaya, moving beyond its traditional tourism-focused model. Originality/Value: This study contributes original insights into the challenges and opportunities for economic diversification in tourism-dependent economies, with a particular focus on Pattaya, Thailand. It offers valuable practical recommendations for SMEs, policymakers, and other stakeholders. Moreover, it underscores the importance of embracing digital transformation and fostering an entrepreneurial ecosystem as key strategies for achieving sustainable economic growth and resilience against global disruptions.